Question

Aniket Company Limited issued ₹ 40,00,000 new capital divided into ₹ 100 per equity share at a premium of ₹ 20 per share payable as ₹ 10 on Application, on Allotment ₹ 40 and ₹ 10 premium and on Final call ₹ 50 and ₹ 10 premium. The issue was over-subscribed to the extent of 50,000 equity shares. The applicants on 5,000 shares were sent letter of regret and their application money was refunded. Remaining applicants were allotted shares on pro-rata basis. All the money due on Allotment and Final call was only received. Make necessary journal entries in the books of Aniket Company Limited.

Answer 1

Journal Entries in the books of Aniket Company Limited
Date / No.	Particulars	L.F.	Debit Amount (₹)	Credit Amount (₹)
1.	Bank A/c   ...Dr.		5,00,000	-
	To Equity Share Application A/c		-	5,00,000
	(Being application money on 50,000 equity shares @ ₹ 10 per share received)
2.	Equity Share Application A/c   ...Dr.		50,000	-
	To Bank A/c		-	50,000
	(Being application money on 5,000 equity shares @ ₹ 10 per share refunded)
3.	Equity Share Application A/c   ...Dr.		4,50,000	-
	To Equity Share Capital A/c		-	4,00,000
	To Equity Share Allotment A/c		-	50,000
	(Being application money on 45,000 equity shares transferred to equity share capital and application money on 5,000 equity shares adjusted against Share Allotment A/c)
4.	Equity Share Allotment A/c   ...Dr.		20,00,000	-
	To Equity Share Capital A/c		-	16,00,000
	To Share Premium A/c		-	4,00,000
	(Being allotment money (including premium) on 40,000 equity shares @ ₹ 50 per share due)
5.	Bank A/c   ...Dr.		19,50,000	-
	To Equity Share Allotment A/c		-	19,50,000
	(Being allotment money on 40,000 equity shares, after adjusting excess application money received)
6.	Equity Share Final Call A/c   ...Dr.		24,00,000	-
	To Equity Share Capital A/c		-	20,00,000
	To Share Premium A/c		-	4,00,000
	(Being share final call money (including premium) on 40,000 equity shares @ ₹ 60 per share due)
7.	Bank A/c   ...Dr.		24,00,000	-
	To Equity Share Final Call A/c		-	24,00,000
	(Being share final call money on 40,000 equity shares @ ₹ 60 per share received)
	Total		97,50,000	97,50,000

Working Note:

Calculation of Application money transferred to Share Allotment:	₹
Application money received (50,000 × ₹ 10) :	5,00,000
Less: Application money refunded (5,000 × ₹ 10) :	50,000
	4,50,000
Less: Application money transferred to Share Capital : (40,000 × ₹ 10)
Excess money received on application transferred to Share Allotment :	50,000

Bifurcation of calls amount: